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Bank Of America To Pay $2.43 Billion In Settlement

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Bank Of America To Pay $2.43 Billion In Settlement

Business

Bank Of America To Pay $2.43 Billion In Settlement

Bank Of America To Pay $2.43 Billion In Settlement

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  • <iframe src="https://www.npr.org/player/embed/161955846/161956294" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

The bank said Friday it will pay $2.43 billion to settle a lawsuit related to its purchase of Merrill Lynch in 2008 at the height of the financial crisis. Investors who owned Bank of America stock at the time brought the class-action suit, claiming bank officials made false statements about the health of both companies at the time of the merger. Bank of America denied the allegations.

STEVE INSKEEP, HOST:

NPR's business news begins with more fallout from the financial crisis.

(SOUNDBITE OF MUSIC)

INSKEEP: Bank of America said this morning, it will pay almost two and a half billion dollars to settle a lawsuit related to its purchase of investment bank Merrill Lynch in 2008. That was the height of the financial crisis and investors who owned Bank of America stock at the time brought the lawsuit. They claimed Bank of America officials made false statements about the health of both companies at the time of the merger. The bank denies the allegations, but in a statement, its CEO says he agreed to settle in order to remove the lingering uncertainty and focus on moving forward.

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